Additional Pay for Pandemic Costs?

Research funded by two key union contractor associations, covering the electrical and sheet metal trades, recently found an average 18% pandemic related impact from reduced productivity and added expenses. It is quite likely that other contractors, both union and non-union, might experience a similar impact

The Productivity loss is real

The productivity loss stems from a number of causes. For example, workers may remain home due to lack of child-care, or to tend to a sick family member. Continue reading…

Post Pandemic Construction?

For the past five years there has been a slow but steady exodus from city urban living to the suburbs and country communities, mostly due to the ability of corporate America to support employees working remotely.

Will the Pandemic accelerate this migration?

Current popular sentiment is to leave the city for those where mobility does not present an issue, but what about those who are left behind? While suburban developments address the new mobility trends, potentially causing a large boom for the construction Industry as it ties into the USA’s Infrastructure Plan and 5G Rural Broadband, there will also be a major need to upgrade our cities.

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What’s your bond broker’s background?

Surety bonds are basically insurance products. So it’s not surprising that most surety bond agencies come from an insurance background.

Does that matter?

It very well might.

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What is a certified MBE?

If you happen to be in the Construction Industry and handle government contracts, that acronym may conjure thoughts of extra layers of compliance, issues with finding qualified firms or any number of other stress-related feelings.

MBE basics

Governments at all levels and many Fortune 1000 firms are requiring a percentage of their capital expenditures be set-aside for Certified Minority Firms. In addition, traditional non-MBE firms that compete for government contracts are often Continue reading…

Force Majeure

It’s interesting how a slew of Latin legal words and terms are rarely used but synonymously conjure an action that is often easily overlooked. Force Majeure is the perfect term given the current worldwide state of affairs. How often has this clause been briefly considered or even skipped over when reading a construction contract? It may be time to re-read this clause and confirm how it applies to your job performance and contractual obligations, or those of your clients.

Job delays caused by labor shortages, gathering restrictions, delivery delays, and material back-orders as well as cost overruns and performance deficiencies may occur, and be beyond your control. As the world has come to a pause, you should be proactive and review existing contracts and any new ones you are considering. You should involve your attorneys, and should examine your supply chains and your own operations, to see how they may be affected. Continue reading…

Faster, more convenient surety bonds

Let’s face it. Getting bonded, like many other things in life, is necessary, but can seem like an awful hassle. And it sometimes is, with the required documentation and constant back and forth communications and delays. If you do a high volume of projects tasks such as renewals, cancellations, riders and other record keeping can be a challenge as well.

Streamlining the process

That was yesterday. New, streamlined web portals, such as the SuretyWave Bond Portal offered by Blaise Group, eliminate much of the tedium. You still have to supply financials and other documentation (we have a simplified underwriting process for bonds under $750K that helps solve that), but the process is so much faster and more convenient with SuretyWave.

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P3 may be here to stay

The complexity of providing Surety Bonds to Public/Private Partnership (P3) projects is similar to the Ying and Yang of nature.  Insurance Carriers have a need to provide coverage for a proven construction related project, while understanding the operational piece of that project which, typically is the revenue driver for P3 Consortiums.

Backtrack to Europe in the late 1970’s and 1980’s, when many governments were experiencing high public debt while staring down a gloomy need for infrastructure and public works spending. So they would develop a private finance initiative (PFI).  One can arguably track this development to the United Kingdom & Australia in the 1990’s, when the PFI was a way of fusing public projects to private capital, and was largely encouraged. Continue reading…